Cryptocurrency Exchange System
Our series of analysis are geared towards helping cryptocurrency traders determine when to buy or sell a digital coin using a set of predefined trading rules.
The cryptocurrency exchange system will work very well when crypto traders adhere to the rules.
All the elements that we’ve added to this trading system is done to assist in improving the accuracy of the buy and sell trading signals.
The system works with any timeframe and trade style.
Trade Setup
MT4 Indicators: moving-average-ribbon.ex4 (Inputs Variable Modified; MA1Period=10, MA2Period=45, MA2Method=1, Colors Width Modified; #0=3, #1=3), MACD.ex4 (Default Setting)
Suitable for: Scalping, day trading, swing trading, investing
Trading Time: 24/7, Around the Clock
Cryptocurrency: Any (Bitcoin and Altcoins)
Timeframes: Any
Download
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Buy Trade Example: ETH/USD (Ethereum / US Dollar), H1 Chart
Fig. 1.0
Strategy Rules
Buy Signal
Open a buy trade if the following trading conditions appear on the crypto chart:
- If the moving-average-ribbon currency indicator display a green upward pointing arrow alongside a black cloud that’s aligned somewhat below the price bars as depicted on Fig. 1.0, the cryptocurrency price is said to be pushed to the upside, thus a trigger to go long at once.
- If the silver histograms of the MACD Metatrader 4 indicator stay above the 0.00 horizontal line (see Fig. 1.0), the general market sentiment is said to be bullish, as such a buy alert will suffice.
Suggested Stop Loss for Buy Trade: Place stop loss below the previous swing low price.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions appear on the chart:
- If the moving-average-ribbon custom indicator pops up a red downward pointing arrow while a bullish trend is ongoing, price is signaling a likely bearish reversal, therefore an exit or take profit stance is advised.
- If the silver histogram of the MACD indicator realigns below the 0.00 horizontal level while a bullish trend is running (refer to Fig. 1.0), it is pointing to a probable diminishing bulls power, hence a signal to exit or take profit immediately.
Sell Signal
Open a sell trade if the following trading conditions appear on the crypto chart:
- If the moving-average-ribbon currency indicator displaysa red downward pointing arrow alongside a black cloud that’s positioned somewhat above the price bars as illustrated on Fig. 1.1, the cryptocurrency price is said to be dragged lower, thus a trigger to sell the digital currency of interest.
- If the silver histograms of the MACD indicator stay below the 0.00 horizontal line as exemplified on Fig. 1.1, the overall market sentiment is said to be bearish, as such a sell alert is duly advised.
Suggested Stop Loss for Sell Trade: Place stop loss above the previous swing high price.
Suggested Exit Strategy/Take Profit for Sell Trade
Exit the sell trade if the following trading conditions appear on the chart:
- If the moving-average-ribbon custom indicator pops up a green upward pointing arrow during the course of a bearish trend, price is pointing to a probable bullish reversal, therefore an exit or take stance is recommended.
- If the silver histogram of the MACD indicator readjust above the 0.00 horizontal level while a bearish trend is ongoing (checkout Fig. 1.1), it is pointing to a probable diminishing bear’s power, hence a signal to exit or take profit forthwith.
Sell Trade Example: ETH/USD (Ethereum / US Dollar), H1 Chart
Fig. 1.1
Free Download
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About The Cryptocurrency Technical Indicators Used
The moving-average-ribbon currency indicator is a price cloud based moving average indicator that signals the start of every new trend using a green or red arrow.
The MACD is a default indicator on the MT4 platform.
It is a multipurpose tool used in spotting strong cryptocurrency market trends, while also identifying trend reversals.
Easy Installation
Start using this cryptocurrency system in just 5 minutes. Click here to get started now.
